Oil Price Forecast - Piper Sander says $130 for Brent

[dan_s]

Piper Sandler 6/29/2022: The Flowing Oil Data Digest: 2H Will Be About Escalating Tension & Bad Choices

The West’s policy makers succeed at finding only most-bad options:
> Faced with an acute energy crisis, G-7 & EU leaders take away more supply (EU embargo)
> Invite deep recessions to curb demand
> Discourage domestic supply responses to preserve a failing energy transition

As the EU embargo approaches we expect:
> Steeper discounts on Russian crude
> Reversal of the recent (slight) deflation in diesel margins
> We can now say with greater confidence that our $130/b Brent forecast looks conservative

Our outlook: volatile and sharply rising prices

Jan Stuart, Global Energy Economist, 646 517-1334, Energy@psc.com
Thomas Marchetti, Global Energy Strategist, 646 517-1335, energy2@psc.com
James Noonan, 646 517-1337, james.noonan@psc.com
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MY TAKE: This world runs on oil and all the fairy dust / hopes & dreams of the Climate Change Wackos will not change that. OECD Petroleum Inventories keep falling and that cannot continue. Higher oil prices will go up as OECD inventories go down.

[Fraser921]

The current Administration finds the exact wrong course of action on many decisions.
That is hard to do! If you flip a coin you would be right 50 % of the time.

For the reasons you point out I'm long and will remain long